I'd like to start investing a small % of money each year. Have heard opening a SIPP and investing in global index trackers is a good idea.

I have 2 concerns.1) If the majority of my income is solely classed as gambling winnings and as such not taxable, I am classed as a non-earner and my pension contribution limit is £3,600 gross - a payment of £2,880 to which the taxman adds £720.2) Won't be able to access the funds until I'm around 60.

Initially £3,600/yr would be alright but ideally I'd be looking to invest much more than that in later years.

I'm not sure I quite understand why people even bother with SIPPs? Is it just because they get a 20% or 40% boost from their tax and means they are investing more?

Does it not just make sense for me to invest in S&P 500, FTSE 100, Nikkei, DAX etc. on my own terms, meaning I can have access to my funds whenever and I'm not capped at how much I can invest?

Sorry if I'm missing something obvious. I've no experience with pensions or stocks.

You can have a SIPP AND select your and manage your own investments. For example Xafinity Simply SIPP. With average fortune you may build a substantial sum for later in life when you will benefit from tax-advantages under the aegis of a SIPP. For example, 25% is available tax free through the lifetime of a SIPP. It solves a lot of legacy problems. Of course, as a gambler, it may be your ambition to die penniless.

You can have a SIPP AND select your and manage your own investments. For example Xafinity Simply SIPP. With average fortune you may build a substantial sum for later in life when you will benefit from tax-advantages under the aegis of a SIPP. For exa

Before you consider anything with a tax break, make sure you've already used up what's available.

First there's your income allowance. Relevant for people with little or no income.

Separate from this is your Capital Gains Tax allowance, which is worth about £10k per year. Although spread betting is already tax-free, the cost is in the wider spread. It may be more profitable to trade directly with a good broker (even allowing for commission) until your allowance is used up. Net losses can be carried forward into future years.

Don't forget that a lot of tax-break vehicles erode your gains with various fees.

Also look into the Enterprise Allowance scheme.

Before you consider anything with a tax break, make sure you've already used up what's available.First there's your income allowance. Relevant for people with little or no income.Separate from this is your Capital Gains Tax allowance, which is worth

To answer the original poster's question, what is the alternative? You put your money in the hands of fund managers who invest in a broad (boring?) spread of shares and bonds according to their own rules and charge you fees that erode much of your gains. What they won't do is invest a load of cash in one stock whose price has crashed but which you feel could make a spectacular recovery leaving you a possibly massive tax rebate-enhanced profit, although you might prefer to pay the tax on the money up front (i.e. as income tax) and use a Shares-based ISA instead to shield the entire gain.

To answer the original poster's question, what is the alternative? You put your money in the hands of fund managers who invest in a broad (boring?) spread of shares and bonds according to their own rules and charge you fees that erode much of your ga

Wonder

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